What really happens behind the scenes?

The average bank give 4% interests a year. Have you ever thought why they give this % ? It’s because they are GREEDY, they want to keep all the profits and the bank manager is that one that laughs his way to the bank. The average person is happy with 4% per year because he doesn't’t know any better, he doesn't’t have the knowledge / the edge that we know. As well with other investment projects, did you know that banks also use our money to trade the forex.

There are 2 types of forex traders, the aggressive trader and the conservative trader. They can make anything from 12 % per month to over 100% per month. Obviously the best traders will be working for banks. So imagine a conservative trader making on average 12 % per month, all the bank has to do is just give you 4 % of that and that’s you done for the year, and he’ll just keep making more for the bank using your money. That’s why you never see a bank going bankrupt, it just does not happen because these people are professionals with good risk management and that’s why you are the client because you don’t know any better. Another point to look at is for example you deposit £10,000 into your local bank, but 1 month later you need that money in cash for any reason. 9 times out of 10 the bank won’t be able to give you that in cash straight away. They have to liquidate it (turn into cash). So if it’s in a forex trading account then they’ll have to convert that into cash for you, which takes a few days.
So now you know that banks make money using your money. Pooling everyone’s money together they will have a large balance which means bigger buying power.

 

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